How to Start a Business in USA For Non-Citizens, 2024 Guide

If you are a foreigner planning to build a business in the U.S., knowing how to start a business in USA for non-citizens is a must.

This is because the U.S. has become one of the countries chosen to start a business due to several advantages, such as competitive incentives, a supportive economic environment, and equality by the law among the citizens.

Equally important, according to Fortune Global 500, the aggregate revenues of Fortune Global 500 companies in the U.S. skyrocketed to $13 trillion, surpassing Greater China. Fortune Global 500 ranks the 500 corporations around the world by their revenue yearly.

The USA is also home to 33.3 million small businesses or 99.9% of the U.S. businesses. 

Among 500 companies from the annual ranking, 136 big companies reside in the U.S. 

Therefore, starting a business in the U.S. may be challenging for some people, especially for non-citizens. 

If you are wondering how to start a business in USA for non-citizens, this article will help you answer your question. 

How to Start A Business in USA for Non-Citizens

If you are interested in starting a business in a country that serves advantages supporting your business, like access to new markets and advanced technology, the USA must be on your consideration. 

However, you have to set a thorough preparation to ensure your business runs smoothly in the USA, especially for non-residents.

Here are how to start a business in the US as a foreigner you can follow.

1. Determine Your Company Structure

The first step of how to start a business in USA for non-citizens is to determine the company structure. You can choose from a Limited Liability Company or corporation. 

For your information, a Limited Liability Company (LLC) is a type of business structure that has liability protection, meaning that members' assets are safe if the company gets into debt or is sued, and they are shielded from personal culpability for corporate choices or acts.

In addition, an LLC can decide whether to pass down its gains and losses to its shareholders or to be taxed like a C Corporation.

In contrast, a corporation, which can be divided into C-corp and S-corp, is an independent legal body distinct from its owners.

C-corp gets taxed for their profit, yet still gets the liability protection just like an LLC. Since it is separated from the shareholders when they leave the company, C-corp is still able to continue the business. 

Meanwhile, S-corp is a type of corporation intended to prevent the disadvantage of double taxation. S-corps do not impose corporate tax rates on owners' income when earnings and certain losses are passed down to them directly.

For non-residents, choosing C-corp or LLC can be beneficial. If you plan to expand your business and get into investment, you can go for C-corp because it offers more flexibility and security to external investors. 

Yet, if you want to avoid double taxation, you can go for an LLC. To make it easier to choose the right company structure, you can concept your business comprehensively, including determining the goals, the funds, and so on. 

2. Decide the State of Your Business

After creating your business structure, the next step in how to start a business in USA for non-citizens is to choose the state to register your business. The USA has many states with their characteristics, especially in the business ecosystem. 

To determine the right state, you have to analyze the access to resources, tax policy, and the business environment. 

Some popular states you can choose from are California, Texas, Nevada, and Delaware. 

3. Get a Registered Agent

An organization or individual that is formally acknowledged by the state where you incorporate is known as a registered agent. 

The business has appointed the registered agent to receive the process on behalf of the firm; the registered agent resides in the state in which the business was formed.

For U.S. non-citizens, when handling legal documents like process notices, Secretary of State communications, and other formal government notifications, it might be helpful to have representation domestically. 

Additionally, your registered agent may ensure you get and maintain company permits as well as remember compliance dates.

Every state in the USA may have different requirements in terms of getting a registered agent, but the common requirements you can prepare for are: 

• Has a physical address within the state. 
• Must be over 18 years of age.
• Must be accessible during regular business hours at that address.

4. Register Your Company

Another step in how to start a business in USA for non-citizens is to register your company in the chosen state. 

This step will require you to file some legal documents and a certificate of incorporation. 

Additionally, you have to prepare for the aspects below before registering your company:

• The name of the company.
• A physical address of the company.
• The name and address of the registered agent.
• The aggregate amount and par value of the shares that the company is permitted to issue.
• The name and mailing address of the incorporator.

Besides, you have to prepare for the registration fee, report fee, and franchise tax which may differ in each state. This registration process also applies to how to start a business online steps. 

5. Get a Taxpayer Identification Number

Every firm in the U.S. must have a Taxpayer Identification Number (TIN) for paying taxes. The numbers you should administer are Employer Identification Number (EIN) and Individual Taxpayer Identification Number (ITIN).

Getting an EIN is essential to opening a business bank account, paying taxes, hiring workers, and applying for business licenses. 

To get at TIN, you can apply to the IRS. After getting the number, you can proceed to open a bank account or obtain licenses. 

6. Submit Annual Report

The last thing you need to administer is the annual report. This report contains information related to your business. 

Not to mention, since you are a foreigner in the U.S., the IRS may ask you to pay taxes on the income you gain in the states and an annual fee to the state where you build the business. 

Will I Need a Visa to Start a Business in the U.S.?

Another consideration when you think about how to start a business as a foreigner in US or how to start a small business in the state is the need for a visa. 

Do you need a visa to start a business in the States? The answer is you don’t need it if you run the company outside the USA.

However, if you run it within the United States, you may need a work visa. This is because it is prohibited for non-citizens to work on a corporation or LLC without a valid work visa. 

Additionally, owning a business in the USA doesn’t make you a citizen of the states. Therefore, the first thing you need to do before opening a business is to get a visa. 

You can go for an E-2 visa and fulfill the requirements below:

• You must be a citizen of a country that is part of a Treaty of Friendship, Commerce, or Navigation with the U.S.
• You must intend to invest, or have already invested, a substantial sum of money in a U.S. company.
• You need to be able to demonstrate that you own a majority stake in your company.
• You must only be looking to enter the country to establish and run the investment business.

Yet, if you can’t go for an E-2 visa, you can try other alternatives, like F-1 Optional Practical Training Visa, H-1B Specialty Occupation Visa, O-1A Extraordinary Ability and Achievement Visa, and many more. 

The five steps above are how to start a business in USA for non-citizens you can learn. In conclusion, you have to prepare everything comprehensively, from the structure to the work visa.

However, there is one more thing that you must consider in the business opening, the marketing strategy. 

In this case, SEO is one of the most affordable ways to help you dominate the industry and establish your company as the most recognizable in the U.S.

By implementing SEO, you may raise your online presence and attract more prospective customers.

Additionally, by creating outstanding search-engine-optimized content, you may use relevant keywords to target potential customers, boosting website traffic and revenue.  

Try our SEO Services right now to see how we can help you use relevant keywords to improve your listings, content, and website! Let's work together!